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Does exchange rate policy matter for economic growth? Vietnam evidence from a co-integration approach

Author

Listed:
  • Thi hong hanh Pham

    (University of Rouen)

  • Duc thinh Nguyen

    (Ministry of Planning and Investment of Vietnam)

Abstract

Both economic growth and exchange rate theories suggest that the exchange rate regime could have consequences for the medium-term growth of a country, directly, through its effects on the adjustment to shocks, and indirectly, through its impact on the important determinants of growth. It is, however, surprising that there was little empirical work investigating the indirect relationship between the exchange rate policy and economics growth in the case of a specific country. In a co-integration framework, our research attempts to fill the gap by econometrically investigating the possible impacts of exchange rate regime on economic growth through two main channels - Foreign direct investment (FDI) and Exports - in the case of Vietnam - a successful example of a transitional economy.

Suggested Citation

  • Thi hong hanh Pham & Duc thinh Nguyen, 2010. "Does exchange rate policy matter for economic growth? Vietnam evidence from a co-integration approach," Economics Bulletin, AccessEcon, vol. 30(1), pages 169-181.
    • Handle: RePEc:ebl:ecbull:eb-09-00790
    as

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    References listed on IDEAS

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    Cited by:

    1. Majid Maddah & Fozieh Jeyhoon-Tabar, 2016. "Studying the Flypaper Effect in the Provinces of Iran (2000-2013)," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(3), pages 339-354, Summer.

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    More about this item

    Keywords

    Exports; Exchange Rate; FDI; Growth; Co-integration;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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